82R6453 YDB-D

By: Davis of Dallas H.B. No. 1655

A BILL TO BE ENTITLED

AN ACT

relating to the preference given by state agencies to goods offered by bidders in this state or manufactured, produced, or grown in this state or in the United States.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2155.444, Government Code, is amended by amending Subsections (a), (b), and (c) and adding Subsections (a-1), (b-1), (b-2), (b-3), and (b-4) to read as follows:

(a) The comptroller [commission] and all state agencies making purchases of goods, including agricultural products, shall promote the purchase of and give preference to goods manufactured, [those] produced, or grown in this state or offered by Texas bidders as follows:

(1) unless the state agency determines that the goods are not available in reasonably sufficient quantities, goods manufactured, produced, or offered by a Texas bidder that is owned by a service-disabled veteran who is a Texas resident shall be given a first preference and goods produced in this state or offered by other Texas bidders shall be given second preference[, if the cost to the state and quality are equal]; and

(2) unless the state agency determines that the agricultural products are not available in reasonably sufficient quantities, agricultural products grown in this state shall be given first preference and agricultural products offered by Texas bidders shall be given second preference[, if the cost to the state and quality are equal].

(a-1) A state agency that determines goods manufactured, produced, or grown in this state or offered by a Texas bidder are not available in reasonably sufficient quantities shall:

(1) at least 30 days before purchasing the goods publish a copy of the agency's determination for public comment;

(2) file a written copy of the determination with the comptroller and other relevant state agencies; and

(3) work with the comptroller and other state agencies to ensure the goods are available from a Texas bidder in the future.

(b) If goods, including agricultural products, manufactured, produced, or grown in this state or offered by Texas bidders are not available in reasonably sufficient quantities, the [equal in cost and quality to other products, then] goods, including agricultural products, manufactured, produced, or grown in other states of the United States shall be given preference over foreign products unless the agency determines that the goods are not available in reasonably sufficient quantities [if the cost to the state and quality are equal].

(b-1) A state agency that determines goods manufactured, produced, or grown in another state are not available in reasonably sufficient quantities shall:

(1) at least 30 days before purchasing the goods publish a copy of the agency's determination for public comment;

(2) file a written copy of the determination with the comptroller and other relevant state agencies; and

(3) work with the comptroller and other state agencies to ensure the goods are available from a Texas bidder or from another state in the future.

(b-2) A contract between a state agency and any person who is given preference under this section must contain a provision that requires the person to certify the goods provided under the contract or any subcontract are manufactured, produced, or grown in this state or in the United States or offered by a Texas bidder, as applicable.

(b-3) If a state agency determines a person who was awarded a contract through the use of a preference under Subsection (a) or (b) knowingly provided goods under the contract that were not manufactured, produced, or grown in this state or another state of the United States or offered by a Texas bidder, as applicable, the contracting agency and all other state agencies are prohibited from contracting with the person before the fifth anniversary of the date the contracting agency made the determination. The contracting agency shall notify the comptroller of the determination and the comptroller shall notify all other state agencies of the determination. The contracting agency may:

(1) void the contract with the person; and

(2) recover damages in a civil action in an amount equal to three times the value of the preference given to the person.

(b-4) Nothing in this section is intended to contravene an existing treaty, law, agreement, or regulation of the United States. A preference may not be granted under this section if the preference would contravene any treaty, law, agreement, or regulation of the United States.

(c) In this section:

(1) "Agricultural products" includes textiles and other similar products.

(2) "Manufactured" means, with respect to assembled goods, the final assembly, processing, packaging, testing, or other process that adds value, quality, or reliability.

(3) [(1-a)] "Service-disabled veteran" means a person who is a veteran as defined by 38 U.S.C. Section 101(2) and who has a service-connected disability as defined by 38 U.S.C. Section 101(16).

(4) [(2)] "Texas bidder" means a business:

(A) incorporated in this state;

(B) that has its principal place of business in this state; or

(C) that has an established physical presence in this state.

SECTION 2. The change in law made by this Act applies only to a contract for goods that is entered into on or after the effective date of this Act. A contract entered into before the effective date of this Act is governed by the law in effect on the date the contract was entered into, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2011.